Development potential, cash flows to ensure growth for Macrotech in FY26

From blueprint to build, growth gears for real estate major click into place

Macrotech Developers (Lodha), the country’s second-largest listed real estate company, exceeded its 2024-25 (FY25) guidance, aided by a strong pre-sales performance in the January–March quarter (Q4), driven by launches. The company had guided for ₹17,500 crore in pre-sales for FY25 and surpassed that with bookings of ₹17,630 crore.

 

For 2025-26 (FY26), Macrotech is targeting ₹21,000 crore in pre-sales, reflecting a 19 per cent increase over FY25. Volumes are expected to reach 11 million square feet (msf). Given the development potential of its portfolio, its manageable debt position, and forward-looking guidance, analysts believe the company is well-placed to sustain growth over the medium term. The stock has gained 14.5 per cent over the past three months, and based on current target prices, it could return between 12 per cent and 24 per cent from its present level of ₹1,329.

 

In Q4FY25, the company reported pre-sales of ₹4,810 crore, up 14 per cent year-on-year (Y-o-Y) and 7 per cent sequentially. The quarter, its best yet, was supported by launches worth ₹3,250 crore. Quarterly volumes grew 4 per cent Y-o-Y and 15 per cent quarter-on-quarter, reaching 3.6 msf.

 

For FY26, alongside its pre-sales target, Macrotech has planned launches worth ₹18,800 crore — a 37 per cent increase over the previous year.

 

Collections in Q4FY25 rose to ₹4,440 crore, a 26 per cent Y-o-Y increase, lifting FY25 collections by 29 per cent to ₹14,490 crore. These inflows supported operating cash flows of ₹2,320 crore for Q4FY25 and ₹6,530 crore for the full year, in line with guidance. The company has projected operational cash flows of ₹7,700 crore for FY26, up 17 per cent Y-o-Y. 

 

Macrotech recorded a net cash inflow of ₹310 crore, bringing net debt down to ₹3,990 crore as of March, with a net debt-to-equity ratio of 0.2 times. While new business development for FY26 is pegged at ₹25,000 crore, the company aims to maintain its net debt-to-equity ratio below 0.5 times.

 

Analysts remain upbeat about the company’s outlook. Kotak Institutional Equities, led by Murtuza Arsiwalla, cited Macrotech’s consistent operational and financial execution. The brokerage expects demand to hold firm despite concerns over a broader slowdown, maintaining a ‘buy’ rating and revising its target price from ₹1,360 to ₹1,480.

 

Motilal Oswal Research also expects the company to continue delivering steady growth. Analysts Abhishek Lodhiya and Yohan Batliwala pointed to stable performance across key metrics and believe the company is positioned to capitalise on ongoing consolidation in the sector.

 

The brokerage notes Macrotech’s large land bank at Palava City, a planned urban township near Dombivli, where it holds 600 msf of development potential. A portion is expected to be monetised through industrial land sales, while 250 msf of residential land has been valued at ₹52,800 crore over the next 30 years.

 

Motilal Oswal has retained its ‘buy’ rating and raised its target price to ₹1,625.